MBA vs. Master's in Accounting: Explore the Differences

Author: University of North Dakota
June 4, 2024

In business, expertise in administration and accounting are pillars that uphold successful enterprises.

Both areas offer excellent career paths for those looking to impact the corporate sphere. While there may be some overlap, with administration professionals occasionally taking on accounting duties and vice versa, the core responsibilities and skills required for each are distinct. 

Choosing between an MBA vs. master's of accountancy depends largely on your career goals and personal interests. So, to aid in this decision, let's explore these two qualifications, which, though both lead to rewarding paths, open doors to very different professional landscapes.

What is a Master's in Business Administration?

A master's of business administration (MBA) is a graduate-level degree designed to equip students with a broad understanding of business management practices across various sectors. An MBA program typically covers various topics, including finance, human resources, marketing and operations management, providing a holistic view of business leadership and administration. 

There are various types of MBAs that students can choose from. They can pursue a general MBA, which offers a wide-ranging curriculum or specialize in areas such as business analytics, government and business, or international business, tailoring their education to specific interests or industry needs.

What is a Master's of Accountancy?

A master's of accountancy is a specialized graduate degree focused on deepening knowledge in accounting principles, taxation, auditing and financial reporting. The program is designed for those who wish to enhance their expertise in accounting practices or prepare for certification exams such as the CPA (Certified Public Accountant).

Specializations within a master's of accountancy can include fields like forensic accounting, corporate finance or tax accounting, allowing students to tailor their studies to specific career goals.

Differences Between MBA vs. Master's of Accountancy

When considering a graduate degree in business, choosing between an MBA and a master's of accountancy involves understanding their distinct paths and outcomes. These programs differ significantly in their focus, curriculum and the career opportunities they open up.

To help you navigate these differences, we'll compare the master's in accounting vs. MBA across various aspects, including educational prerequisites, program content and the potential career paths and salaries each degree offers.

Education

A quality MBA program typically considers applicants who have a traditional bachelor's degree in business or a technical background such as a bachelor’s in engineering or bachelor’s in an Arts and Sciences discipline. This inclusivity reflects the MBA's broad approach to business education, aiming to equip students with a wide-ranging understanding of business operations and management.

Conversely, a master's of accountancy can sometimes require a foundational knowledge of accounting and finance, usually in the form of an undergraduate degree in accounting, finance or a closely related field.

The coursework for an MBA is diverse, covering a wide spectrum of business-related topics, including leadership, strategic management, organizational behavior, marketing and finance. This range is intended to prepare graduates for leadership and management roles across various industries. MBA programs often offer concentrations such as finance, marketing or international business, allowing students to specialize while maintaining a broad managerial perspective.

In contrast, a master's in accounting is much more specialized, focusing on advanced accounting principles, auditing, taxation and financial reporting. The program is designed to prepare students for specialized roles in accounting and finance and it often includes preparation for CPA certification. Coursework is typically more technical and detailed, concentrating on the skills needed to navigate corporate and public finance.

Skills

Both MBA and master's of accountancy programs are designed to equip students with a range of skills crucial for success in the business world, yet they emphasize different competencies based on their respective focuses.

Common to both, students develop strong analytical skills, the ability to interpret financial data and a solid understanding of business operations. They also hone their problem-solving skills, learn to navigate complex regulatory environments and improve their communication abilities, ensuring they can convey complex information clearly and effectively.

However, MBA programs particularly excel in fostering skills tailored for broad administrative roles. Students in these programs often come away with:

• Ability to lead and manage teams across various functions of an organization
• Skills in developing and implementing long-term strategic plans that align with organizational goals
• Understanding of how to start, grow and manage a successful business
• Proficiency in negotiating contracts, partnerships and other corporate agreements
• Insights into conducting business in a globalized economy with a grasp of cross-cultural management

On the other hand, a master's in accounting program imparts unique skills specifically valuable for specialized accounting roles, including:

• Deep understanding of complex accounting methods and standards
• Comprehensive knowledge of federal and state tax regulations and how to apply them
• Ability to investigate financial records for discrepancies and fraud
• Skills in conducting thorough and effective audits
• Expertise in creating detailed financial reports that comply with legal standards

Roles and Responsibilities

Professionals with an MBA tend to assume broad managerial roles that require overseeing multiple departments, decision-making at strategic levels and driving business growth. Their responsibilities often include setting long-term goals, crafting strategic plans, managing a diverse team and leading organizational change.

There is a lot one can do with an MBA, with many stepping into roles such as business consultants, corporate managers, entrepreneurs or strategic planners across a range of industries, including technology, healthcare, finance and consumer goods.

In contrast, professionals with a master's in accounting typically focus on more specialized financial reporting, auditing, taxation and compliance roles. Their responsibilities center around ensuring financial accuracy and regulatory adherence, conducting detailed audits, managing company finances and preparing tax documents.

Graduates often pursue careers as certified public accountants (CPAs), auditors, tax advisors, chief financial officers (CFOs) or financial analysts, commonly within accounting firms, corporate finance departments, government agencies or nonprofits.

Work Environments

MBA degree holders typically work in corporate offices, startups, nonprofit organizations or as independent consultants. The work often involves travel, high-level meetings and cross-functional leadership roles that influence the broader strategic directions of their organizations.

On the other hand, master's in accounting graduates typically work in more structured settings such as accounting firms, corporate accounting departments, government bodies or financial institutions. Their roles are usually more predictable and steady, focusing on cyclical business processes like annual audits, quarterly reports and end-of-year taxes.

Salary and Job Outlook

When comparing salaries between fields suitable for MBA graduates and master's in accounting graduates, there's a noticeable difference reflecting the scope of responsibilities and the level of leadership involved.

For those pursuing management occupations, a typical career trajectory for MBA graduates, the median annual wage is an impressive $107,360. Moreover, at the higher end of the spectrum, chief executives, often the pinnacle of MBA career paths, command a median annual wage of $189,520, with compensation packages that frequently include additional benefits like stock options and performance bonuses.

On the other hand, the median annual wage for accountants and auditors is $79,880. Those in the lower 10% earn less than $50,440, while those in the top 10% can earn more than $137,280. The variance within this range often depends on experience, specialization, geographic location and the type of employer.

Regarding job outlook, employment for accountants and auditors is projected to grow 4% from 2022 to 2032. This field is expected to see about 126,500 job openings each year over the decade, primarily due to employment growth and replacement needs. Meanwhile, employment in management occupations, which includes many roles suited for MBA graduates, is expected to grow faster than the average for all professions within the same period, with approximately 1.1 million openings each year.

MBA or Master's of Accountancy: Which One Should You Choose?

When deciding between an MBA and a master's of accountancy, students should consider their career aspirations and the work environment in which they thrive.

An MBA might be the right fit if you are drawn to leadership roles, broad strategic oversight, and managing various aspects of a business. Contrarily, if you have a strong affinity for numbers, meticulous attention to detail and a specific interest in financial systems, tax law or auditing, a master's in accounting could be more suitable.

Reflect on where your professional interests lie and the skills you most enjoy using—these considerations will guide you to the degree that aligns best with your career goals.

Conclusion

Though the choice between these two fields ultimately depends on you, rest assured, there is no wrong choice. Both paths offer substantial benefits and can open doors to rewarding careers in various sectors.

At UND, we are equipped to support your journey, whether you pursue our MBA program or our Master's of Accountancy, which is available in two tracks: a Professional Track for Accounting Majors and a Fundamentals for Non-Accounting Majors. We also offer an Accelerated Accounting degree program, enabling an undergraduate student to complete the Bachelor of Accountancy and Master of Accountancy in a streamlined option.

At UND, we are committed to helping you build a successful future—because here, your success is our business.

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